Estonia to Support Construction of Biomethane Injection Point into Gas Transmission Network

TALLINN - The Minister of Energy and the Environment has signed a regulation to provide support for the establishment of a biomethane injection point into the gas transmission network.

"Biomethane production in Estonia has grown sevenfold over the last six years, and our domestic clean gaseous fuel is currently used mainly in transport. Analyses show that there is potential for biomethane production to grow several times over from its current level. In addition to the transport sector, domestic biomethane will be used in new dispatchable gas power plants in the future. With this new measure, we are supporting the establishment of a biomethane injection point to promote the decarbonization of the gas network and enhance energy security," said Minister of Energy and the Environment Andres Sutt.

The support will facilitate the construction of at least one public injection point, through which a minimum of 33 gigawatt-hours of biomethane will be injected into the gas network annually. All companies registered and operating in the Estonian Business Register that are involved in or wish to start producing and selling biomethane are eligible to apply. The measure is financed by the European Regional Development Fund with a total budget of two million euros. The maximum support rate is 75 percent of the project's eligible costs.

Biomethane production in Estonia began in 2018 with a total output of 39 GWh. By 2024, production had surged sevenfold to 275 GWh. Currently, biomethane in Estonia is primarily used as a transport fuel. The digestate, a byproduct of biomethane production, serves as an excellent fertilizer for agriculture. In addition to its current use in the transport sector, biomethane will also be utilized in future gas power plants. The construction of a biomethane injection point will create new opportunities for the existing gas network.

A recent study by the University of Tartu and Tallinn University of Technology found that Estonia's domestic biomethane production potential is between 0.8 and 1.4 TWh per year by 2035. The Energy Sector Development Plan until 2035 (ENMAK 2035) sets a target of producing 1 TWh of renewable gases in Estonia by 2035, with biomethane accounting for the vast majority.

The Environmental Investment Center is expected to open the application round in the first half of 2026, and it will remain open for three months. The injection point must be operational by 2029 at the latest.

This support measure is part of the 'A Greener Estonia' policy objective under the 'Operational Program for Cohesion Policy Funds 2021-2027' and contributes to achieving the climate goals of both the European Union and Estonia.